Who has the sole discretion in administering the Golden Krust Caribbean Restaurant advertising fund?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
The advertising fund will be spent only for the preparation, purchase and placement of advertising, including but not limited to preparing and producing video, audio and written advertising materials, administering regional and multi-regional advertising, purchasing direct mail and other media advertising and employing advertising promotion and marketing agencies to provide assistance and supporting public relations, market research and other advertising, promotion and marketing activities, except for such reasonable salaries, administrative costs, travel expenses and overhead as we incur in administering the fund. The Advertising Fund periodically will furnish you with samples of advertising, marketing and promotional formats and materials at no cost. Multiple copies of such materials will be furnished to you at our direct cost of producing them, plus any related shipping, handling and storage charges. The fund is intended to further recognition and acceptance of the Golden Krust name, marks and products, and we reserve the sole discretion in administering the fund as well as for the creation, design, development, selection and placement of advertising.
Source: Item 22 — CONTRACTS (FDD page 35)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, Golden Krust reserves the sole discretion in administering the advertising fund. This fund is used for the preparation, purchase, and placement of advertising, including video, audio, and written materials. It also covers administering regional and multi-regional advertising, purchasing direct mail and other media advertising, employing agencies for support, and covering public relations, market research, and other promotional activities.
Reasonable salaries, administrative costs, travel expenses, and overhead incurred by Golden Krust Caribbean Restaurant in administering the fund are also covered. Franchisees will periodically receive samples of advertising materials at no cost, with multiple copies available at the direct cost of production plus related charges.
The purpose of the advertising fund is to enhance the recognition and acceptance of the Golden Krust Caribbean Restaurant name, marks, and products. This means that while franchisees contribute to the fund, Golden Krust Caribbean Restaurant ultimately decides how the money is spent to promote the brand.